NATIONAL SAVINGS AND ECONOMIC GROWTH IN NIGERIA (1970-2007).

NATIONAL SAVINGS AND ECONOMIC GROWTH IN NIGERIA (1970-2007) (ECONOMICS PROJECT TOPIC)

ABSTRACT

The research work studied the national savings and Nigerian economic growth, spanning from 1970-2007. The study adopted Ordinary Least Square (OLS) single equation model. Using time series data over the period, the work shows that National Savings is not significant at SY level and it granger causes real gross domestic product. The study also shows that exchange rate is significant in its contribution to economic growth. The investment as one the of explanatory variables is significant and supports the idea that most of the investments in Nigeria are not from savings. The study also reveals that money supply has no impact on Nigeria’s economic should increase national savings through increased interest rate on  deposits and also maintain its managed floating exchange rate policy.

CHAPTER ONE

1.1             BACKGROUND OF THE STUDY

Saving naturally play an important role in the economic growth and development process. Savings determine the national capacity to invest and thus to produce, which in turn, affect economic growth potential. Low saving rates have been cited as one of the most series constraints to sustainable economic growth. Growth models developed by Romer (1986) and Lucas (1988) predict that higher savings and the related increase in capital accumulation can result in a permanent increase in growth rates.

The close relationship between the savings rate of the economy and the economic growth is stylized feature which has been well documented in number empirical investigations…

NATIONAL SAVINGS AND ECONOMIC GROWTH IN NIGERIA (1970-2007) (ECONOMICS PROJECT TOPIC)